Face-to-face meetings may be held in an effort to reduce tension over a controversial lottery grant for a York travellers' organisation.

Residents at the James Street travellers' site in the city have said they would give the money to St Leonard's Hospice if they had their way.

The National Lottery Charities Board has awarded £183,033 to the York Travellers' Trust to help establish residents' associations on the Clifton Moor, Osbaldwick and James Street travellers' sites in the city.

The cash will also go towards a central travellers' advice and support centre.

But an application to the board from St Leonard's for £1 million towards the Hospice 2000 Appeal was turned down, though lottery staff have stressed that the two bids were not linked and were judged by different committees.

Travellers' spokesman Thomas Swales said he had been contacted by residents from the James Street and Outgang Lane (Osbaldwick) sites saying they did not need charity and they wanted the money to go to the hospice.

Mr Swales also said no one he had spoken to had been told anything about the bid for the travellers' trust.

Colin Stroud, general secretary of York Council for Voluntary Services which includes the trust, said he had also been contacted by Mr Swales and other travellers who were concerned about the grant.

He said he had been under the impression that travellers had been consulted about the bid and what he had now heard gave him great concern.

Mr Stroud wanted to meet with travellers to calm feelings and sort out the issue. He said that if they did not want the project it would not be forced on them.

"The last thing we want to do is cause the travellers any distress over this," he said.

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